Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the Hubbart formula, how to find the room pricing in detailed steps? Here is the information: 200 rooms, 10.000.000$ cost, fully equipped Equity =

Using the Hubbart formula, how to find the room pricing in detailed steps?

Here is the information:

200 rooms, 10.000.000$ cost, fully equipped

Equity = 2.5 M$, ROE = 15%, bank loans : interest = 12 %, Expected occupancy = 75%

Property taxes: 250000, Insurance 50000, Depreciation: 300000, Adm.& General: 300000,

Sales&Marketing Expense: 200000, maintenance: 200000, Utility Cost: 300000 Room expense: 10/room sold, Operating Supplies: 240000, Food Income: 90000, Beverage Income: 60000, Telecommunication Department Income: 20000, Other Income: 100000

The final answer should be $66.53

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Committee Essentials

Authors: Curtis C. Verschoor

1st Edition

0471699594, 978-0471699590

More Books

Students also viewed these Accounting questions

Question

The company openly shares plans and information with employees.

Answered: 1 week ago